Is there a limit to the amount of debt I can have when filing for bankruptcy?

Yes, the amount of debt you can have when filing for bankruptcy can be limited. In Nebraska, the laws governing bankruptcy are quite clear about how much debt you can have when submitting an application. Under Chapter 7 bankruptcy, which allows for the elimination of certain types of debt, you can only have up to $395,000 in unsecured debt and up to $1,184,200 in secured debt when filing. This maximum amount applies to all debts, including any student loans, credit cards, and medical expenses. Under Chapter 13 bankruptcy, you will need to enter into a repayment plan that lasts three to five years, and your total debt cannot exceed $360,475 in unsecured debt or $1,081,400 in secured debt. It is important to keep in mind that even if you have less debt than the limits imposed by Chapter 7 and Chapter 13 bankruptcy, you must still be eligible to file for whichever type of bankruptcy you choose. Generally, you must pass a “means test” to show that you are not able to repay your debt with current income. In summary, when filing for bankruptcy in the state of Nebraska, you must be aware of the maximum allowed levels of debt for Chapter 7 and Chapter 13 filings. Additionally, you must be able to demonstrate that despite your current income, you are not able to repay the debt and are thus eligible to file for bankruptcy.

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Is there a limit to the amount of debt I can have when filing for bankruptcy?

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